"Bitcoin's Price Fortified by Massive Accumulation Above $97,500"

Bitcoin's Price Stability Bolstered by Key Accumulation Zones

Bitcoin's price stability has been reinforced by significant accumulation zones, as indicated by a closer examination of the cryptocurrency's Cost Basis Distribution (CBD) metric. Over the past month, nearly 200,000 BTC has been accumulated above the $97,500 level, with large investors and institutions seemingly defending this price zone. This level of accumulation suggests that downward pressure on Bitcoin's price should be minimal in the near term.

Additionally, investors whose cost basis is above $99,000 have obtained over 150,000 BTC, a trend evident in both weekly and monthly on-chain data. This activity indicates a shift in investor sentiment, with more holders moving their cost basis up into the $99,000 range. This price point is now being viewed as a support level, which is crucial for ensuring Bitcoin's continued strength at higher valuations.

These accumulation trends suggest that Bitcoin's present stability above the $97,500-$99,000 range is robust. Furthermore, the short-term holder cost basis is approximately $92,000. Therefore, the distance between the current market level and this lower threshold appears healthy enough to keep any kind of panic selling at bay for the time being. However, if we were to fall below the $97,500 level, the situation could become precarious.

Retail Investors Remain Cautious

Despite the rapid accumulation of Bitcoin by larger players, retail investors have shown little inclination to add to their holdings. Santiment's on-chain data reveals a consistent decline in the number of addresses holding between 0 and 1 Bitcoin. This trend seems to indicate that the market's smaller participants are either taking their short-term profits or sitting on the sidelines, seemingly waiting for more advantageous conditions before they make any moves to re-enter the market.

The sustained bullish momentum often has retail participation as its key driver. However, the dip from the all-time high of over $69,000 has seen retail investors show a cooling interest in accumulating the asset. The latest DAA data shows that Bitcoin held by retail investors on a roughly 12-month moving average is down about 30%.

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